1120 ET - Bitcoin is back below $60,000 as investors guess what data coming soon will mean for the economy and appetite for risk-on assets like bitcoin and other cryptocurrencies. "For the week ahead the focus will be on whether the data justifies Warsh's hawkish posture, particularly the jobs report on Thursday and the ISM Manufacturing survey on Wednesday," says Stephen Coltman of 21shares in a note. Focus is also being put on the activities of bitcoin treasury firm Strategy, with company head Michael Saylor expected to do an interview this week that may disclose the company's next steps - including if it plans on selling any more of its huge bitcoin stockpiles to fund operations. (kirk.maltais@wsj.com)
1120 ET - The U.K. is not the only major economy facing fiscal risks, Capital Economics' Vicky Redwood says in a note. Several other major economies such as the U.S., France, and Italy "face challenging fiscal positions and upcoming political events that could trigger renewed bond market volatility," she says. Recent bond market reactions indicate that investors are more responsive to fiscal credibility than they are to debt levels alone, Redwood says. (miriam.mukuru@wsj.com)
1052 ET - Robinhood Markets' prediction markets business is gaining momentum with volumes accelerating over the past week, putting the metric on track to land nearly 40% ahead of analysts' estimate for the second quarter, Truist Securities analysts say in a note. Prediction revenue could see even greater upside than just applying Wall Street's take rate to the volume upside given the World Cup is likely driving considerable volume, the analysts say. Such contracts are tradable on Robinhood's own Rothera exchange, where it does not share revenue with third-party exchanges, they say. All in, Robinhood is on pace for its best trading month ever in June for equities, options and prediction markets, making for a "hat trick, unassisted by crypto," they say. (kelly.cloonan@wsj.com)
1038 ET - Concerns about U.K. fiscal policies could weigh on long-dated gilts, hindering their yields from falling considerably, eToro global market analyst Lale Akoner says. Investors are keen to find out the detailed fiscal and economic policies of the incoming government, after Keir Starmer's resignation from the prime minister role. "Speculation over who replaces Rachel Reeves at the Treasury adds another layer of uncertainty," Akoner says. Gilt investors could demand more compensation for fiscal risk, keeping long-dated gilt yields fairly high, she says. U.K. 30-year gilt yields last trade at 5.433%, higher than the German 30-year Bund yields at 3.416%, Tradeweb data show. (miriam.mukuru@wsj.com)
1033 ET - The Supreme Court has rejected President Trump's attempt to fire Federal Reserve board member Lisa Cook. The decision preserves her position and is widely seen as reinforcing the Federal Reserve's independence. In a 5-4 decision, the Court upheld the lower courts' rulings that Cook could continue serving at the central bank as her legal case challenging the termination moves forward. "The Government has not shown that it is likely to prevail on the legal arguments advanced in its stay application," the Court said. Cook launched her legal battle on Aug. 28 after Trump attempted to remove her from the Fed amid allegations she made false claims on mortgage documents in 2021 that may have secured her more favorable loan terms. (patrick.sheridan@wsj.com)
1012 ET - Japanese authorities seem to be refraining from further interventions to curb the yen's weakness, XM analyst Achilleas Georgolopoulos says as the yen falls to a near two-year low against the dollar. The yen is weaker after the Japanese government published its draft economic blueprint urging the Bank of Japan to align its monetary policy decisions with the government's growth agenda, he says. This implies "low interest rates and a very gradual exit from the current accommodative stance." The dollar rises to as high as 161.96 yen, according to LSEG. If it rises above 161.99, it would reach the highest levels in nearly 40 years. (renae.dyer@wsj.com)
0957 ET - House hunters were still heading south last quarter, with Orlando, Fla., as the most popular destination. Redfin says that roughly one in five--19.1%--U.S. house hunters looked to move from one part of the country to another in 1Q. That's up slightly from 18.9% a year earlier. Housing costs are near record highs because mortgage rates and sale prices remain high, and inflation is pushing up everyday expenses. That's motivating people to move to more affordable areas. The typical Orlando home costs just over $400,000, roughly half the cost of the typical home in New York. Orlando was followed by three other Florida metros: North Port, Miami and Cape Coral. Half of the most popular destinations are in Florida, and all are relatively affordable, especially compared to the places people are most commonly leaving. (chris.wack@wsj.com)
0938 ET - June payrolls are likely to remain robust, but there are downside risks, Bank of America economists write. They expect Thursday's report to show 110,000 jobs added, a slowdown from May's 172,000, but still a healthy pace. BofA forecasts the unemployment rate steady at 4.3%. The economists warn that "May's surge in leisure [and] hospitality may have been driven by the World Cup or Memorial Day timing, and if it was the latter, June could see payback." A strong report "would likely move markets closer to our call for three hikes," this year, the economists say. WSJ consensus calls for a 118,000 growth in June payrolls. (paulo.trevisani@wsj.com; @ptrevisani)
0926 ET - Investors in U.K. government bonds, or gilts, have near-term reassurance that the potential next prime minister, Andy Burnham, will maintain fiscal prudence following his speech on Monday, Aberdeen Investments' Alex Everett says in a note. Burnham outlined an ambitious plan to reduce welfare expenditure, which signals some willingness to take challenging decisions, Everett says. "With such a focus on investment and improvement spending, the re-affirmation of prudence was welcome at this relatively early stage," he says. Ten-year gilt yields fall 1 basis point to last trade at 4.723%, Tradeweb data show. (miriam.mukuru@wsj.com)
0924 ET - The euro could struggle to recover unless there is a significant improvement in eurozone economic activity data, Rabobank's Jane Foley says in a note. Changing levels of enthusiasm for the euro since last year have played an underestimated role in the movements of the euro-dollar exchange rate, she says. The market was betting on a stronger euro until the Iran war weakened the eurozone growth outlook, she says. Without much improved eurozone data, it will be difficult for euro traders to regain optimism. In contrast, the dollar should remain supported by a better-than-expected labor market, a resilient consumer sector and strong inflows into U.S. stocks, she says. The euro rises 0.2% to $1.1408. (renae.dyer@wsj.com)
0919 ET - Prospective future British Prime Minister Andy Burnham's plans to spread growth outside London and throughout U.K. regions must see money spent to boost local growth and not mean further costs on business, says Shevaun Haviland, director general of the British Chambers of Commerce. "It's crucial that the devolution agenda has local business at its heart." Creating greater parity between academic and technical qualifications--one of Burnham's plans set out in a speech Monday--is something business wholeheartedly supports, Haviland says. A pledge to improve public procurement is also welcome. But new local business taxes and visitor levies would stifle economic growth. "Firms need consistency, clarity and stability from policymakers, if business confidence is to be improved," she adds. (edward.frankl@wsj.com)
0905 ET - The front-runner for the U.K. prime minister role, Andy Burnham, in his speech on Monday showed commitment to fiscal measures, calming investor concerns about possible shift to looser rules, Barclays Jack Meaning and Cian Hennigan say in a note. "There was no sense of trying to find ways to game the rules or increase borrowing, which would have worried markets," the economists say in a note. Ten-year gilt yields fall to last trade at 4.728% following the speech, from 4.745% beforehand, Tradeweb data show. (miriam.mukuru@wsj.com)